Sarawak Consolidated Industries Berhad announced that it had secured an Islamic banking facilities amounting to RM70 million from SME Bank.
The group has structured two major facilities from the Bank to enhance its financial operations and project execution capabilities. The first, a Kafalah (Bank Guarantee-i) facility valued at RM15 million, is designated for issuing performance guarantees. This facility is applicable to contracts awarded by a diverse range of entities including Federal Government Ministries, Departments, or Agencies; State Government Bodies, Agencies, or Companies; Statutory Bodies or Other Semi-Government Agencies; as well as Government Linked Companies (GLCs) and their subsidiaries, and Government Link Investment Companies (GLICs) and their subsidiaries, provided these entities hold a minimum of 51% shareholding by the government or its entities.
The second facility, a Revolving Credit-i worth RM55 million, is designed to finance the working capital requirements associated with the contracts from the same types of awarding parties as Kalafah. This ensures SCIB maintains sufficient liquidity to manage and deliver projects efficiently, supporting the company's robust operational flow and enhancing its delivery capacity across various governmental and semi-governmental projects.
The group said the facilities are expected to bolster SCIB's financial stability and agility, enabling the company to maintain its leadership in the construction and infrastructure sectors without affecting its share capital or shareholder structure.